Expanding the role of diverse-owned firms in Capital Markets
Expanding the Role of Diverse-Owned Firms in the Capital Markets: A survey done in conjunction with Fitch and NASP.
Expanding Opportunities: 66% of companies are actively engaging or planning to engage diverse-owned firms for capital markets transactions, mainly in co-manager roles for bond underwriting, with some involvement in commercial paper placements and open market repurchase programs.
Facing Barriers: Despite progress, minority-owned firms encounter significant challenges, including policies favoring transactions with revolver banks and the need for stronger balance sheets to handle trading risks and support lending.
Growth Strategies: For further success, diverse-owned banks and broker-dealers must develop compelling value propositions and proactively approach corporate issuers, enabling them to make a case for a larger share of business outside standard practices.
